Breaking below 3000 sparks a shockwave! When will Ethereum's short-term turning point appear?

Multiple bearish factors are resonating to suppress Ethereum's trend. Tonight, Cheng Jingsheng will provide a simple analysis from two aspects. First, in terms of news, the escalation of US-EU trade friction has triggered a risk-off sentiment in global risk assets, leading to continuous outflows from the crypto market; the US January CPI data is about to be released, reinforcing expectations of prolonged high interest rates by the Federal Reserve, and the cost of holding cryptocurrencies remains high. Although on-chain whales are still accumulating near $2720, the market is short-term dragged down by Bitcoin's correlation, with strong wait-and-see sentiment. Only long-term ecosystem upgrades provide some bottom support.

Second, technically, Ethereum is currently oscillating within a narrow range around $2950-3000. The daily chart shows consecutive bearish candles, indicating a weak structure. The $3000 round number acts as a short-term strong resistance, with MA25 and MA99 forming a double suppression. The hourly Bollinger Bands are tightening, with $2950 as a key support. A break below could see a decline to $2890-2850. Overall, trading volume is shrinking, and bulls and bears are temporarily balanced, with no clear breakout signals. Only the weekly chart shows a potential long-term bullish pattern like an arc bottom.

Short-term trading suggestions: focus on low buying and high selling within the range, with light positions. Use the $2950 support as a basis for light long positions, and add more if it stabilizes above $3000, targeting $3050-3100, with a stop-loss at $2900.

If the $2950 support is broken, then consider light short positions, targeting $2850-2890, with a stop-loss at $3000. Pay close attention to the US January CPI data release. After breaking the range, add positions accordingly to avoid the dual-directional risk caused by Bitcoin's correlation.

These are personal suggestions only and for reference. They do not constitute investment advice. Please follow Cheng Jingsheng's strategic layout for specifics!#以太坊